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LAW5556M
Module Reading List

Corporate Finance and Securities Law, 2021/22, Semester 2
Dr Steven Montagu-Cairns
S.Cairns@leeds.ac.uk
Tutor information is taken from the Module Catalogue

Key Reading List:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020) (Student to purchase)

Ellis Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014)

 

Lecture 1: Introduction to Corporate Finance Law

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 2 ‘Overview of Financing Options’

Recommended readings:

Department of Business, Innovation and Skills, ‘Companies Act 2006: Executive Summary of Evaluation Report’ available via https://www.gov.uk/government/publications/companies-act-2006-executive-summary-of-evaluation-report

Luigi Zingales, ‘Presidential address: Does finance benefit society?’ (2015) 70 The Journal of Finance 1327

Further readings:

Henry G. Manne, ‘Our Two Corporation Systems:  Law and Economics’ (1967) 53 Virginia Law Review 259

Katharina Pistor, ‘A Legal Theory of Finance’ (2013) 41 Journal of Comparative Economics, 315

Merton H. Miller, ‘The Modigliani-Miller Propositions After Thirty Years’ (1988) 2.4 Journal of Economic Perspectives 99–120

Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer and Robert M. Vishny, ‘Legal Determinants of External Finance’ (1997) 102 Journal of Finance 1132

Ronald J. Gilson and Rainier H. Kraakman, ‘The Mechanisms of Market Efficiency’ (1984) 70 Virginia Law Review 549

 

Lecture 2: Capital Structure

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 3 ‘The Relationship between Equity and Debt’

Recommended readings:

Eilís Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014): Chapters 2 and 3

Further readings:

Eva Micheler, ‘Disguised Returns of Capital – An Arm’s Length Approach’ (2010) 69 The Cambridge Law Journal 151

Frank H. Easterbrook and Daniel R. Fischel, ‘Limited Liability and the Corporation’ (1985) 52 University of Chicago Law Review 89

Mariana Pargendler, ‘Veil Peeking: The Corporation as a Nexus for Regulation’ (2021) 169 University of Pennsylvania Law Review’ 717

Michael C. Jensen and William H. Meckling, ‘Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure’ (1976) 3 Journal of Financial Economics 305

Milton Harris and Artur Raviv, ‘The Theory of Capital Structure’ (1991) 46 The Journal of Finance 297

Stewart C. Myers, ‘Capital Structure’ (2001) 15.2 Journal of Economic Perspectives 81

 

Seminar 1: Legal Capital

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 5 ‘Legal Capital’

Eilís Ferran, ‘Revisiting Legal Capital’ (2019) 20 European Business Organization Law Review 521

Further readings:

Brian R. Cheffins, ‘Does Law Matter? The Separation of Ownership and Control in the United Kingdom’ (2001) 30 Journal of Legal Studies 459

Eilís Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014): Chapters 4, 5, and 6

John Armour, ‘Share Capital and Creditor Protection: Efficient Rules for a Modern Company Law’ (2000) 63 Modern Law Review 355

John Armour, ‘Legal Capital: An Outdated Concept?’ (2006) 7 European Business Organisation Law Review 5

Luca Enriques and Jonathan R. Macey, ‘Creditors Versus Capital Formation: The Case against the European Legal Capital Rules’ (2001) 86 Cornell Law Review 1165

 

Lecture 3: Equity Finance

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 4 ‘Issuing Shares’

Recommended readings:

 

Charles A. E. Goodhart and Rosa M. Lastra, ‘Equity Finance: Matching Liability to Power’ (2020) 20 Journal of Financial Regulation 1

Alan Dignam and John Lowry, Company Law (11th edn, Oxford University Press, 2018): Chapter 5

Eilís Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014): Chapters 7, 8, and 9

Further readings:

Brian Broughman and Jesse M. Fried, ‘Do Founders Control Start-Up Firms that Go Public?’ (2020) 20 Harvard Business Law Review 49

Daniel J. Hemel and Gregg D. Polsky, ‘Taxing Buybacks’ (2021) 38 Yale Journal on Regulation 246

Eilís Ferran, ‘What’s Wrong with Rights Issues?’ (2008) 2 Law and Financial Markets Review 523

Henry Hansmann and Mariana Pargendler, ‘The Evolution of Shareholder Voting Rights: Separation of Ownership and Consumption’ (2014) 123 Yale Law Journal 948

John Armour and Jeffrey N. Gordon, ‘Systemic Harms and Shareholder Value’ (2014) 6 Journal of Legal Analysis 35

Frank H. Easterbrook, ’Two Agency-Cost Explanations of Dividends’ (1984) 74 American Economic Review 650

 

Lecture 4: Debt Finance

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapters 6 and 7

Recommended readings:

Alan Dignam and John Lowry, Company Law (11th edn, Oxford University Press, 2018): Chapter 6

Eilís Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014): Chapters 11 and 12

Further readings:

Albert Choi and George Triantis, ‘Market Conditions and Contract Design: Variations in Debt Contracting’ (2013) 88 New York University Law Review 51

Barry E. Adler and Marcel Kahan, ‘The Technology of Creditor Protection’ (2013) 161 University of Pennsylvania Law Review 1773

Eilís Ferran, ‘Floating Charges – The Nature of the Security’ (1988) 47 Cambridge Law Journal 213

George C. Triantis, ‘Exploring the Limits of Contract Design in Debt Financing’ (2013) 161 University of Pennsylvania Law Review 2041

Klaus M. Schmidt, ‘The Economics of Covenants as a Means of Efficient Creditor Protection’ (2006) 7 European Business Organization Law Review 89

Tobias Berg, Anthony Saunders, and Sascha Steffens, ‘Trends in Corporate Borrowing’ (2021) 13 Annual Review of Financial Economics 321  

William W. Bratton, ‘Bond Covenants and Creditor Protection: Economics and Law, Theory and Practice’ (2006) 7 European Business Organization Law Review 39

 

Seminar 2: Public Offers of Shares

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 10

Recommended readings:

Eilís Ferran and Look Chan Ho, Principles of Corporate Finance Law (Oxford University Press, 2014): Chapter 13

Further readings:

Michael Ewens and Joan Farre-Mensa, ‘Private or Public Equity? The Evolving Entrepreneurial Finance Landscape’ (2021) NBER Working Paper 29532, <http://www.nber.org/papers/w29532> accessed 1 January 2022

Michael Ewens Kairong Xiao, and Ting Xu, ‘Regulatory Costs of Being Public: Evidence from Bunching Estimation’ (2021) NBER Working Paper 29143, <http://www.nber.org/papers/w29143> accessed 1 January 2022

John Armour, Simon Deakin, Prabirjit Sarkar, and Ajit Singh, ‘Shareholder Protection and Stock Market Development: An Empirical Test of the Legal Origins Hypothesis’ (2009) 2 Journal of Empirical Legal Studies 343

 

Lecture 5: Securities Regulation

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 11

Recommended readings:

John Armour, Luca Enriques et al., The Anatomy of Corporate Law: A Comparative and Functional Approach (3rd edn., Oxford University Press 2017): Chapter 9

Further readings:

Ann M. Lipton, 'Not Everything Is About Investors: The Case for Mandatory Stakeholder Disclosure' (2020) 37 Yale Journal of Regulation 499

Barbara Black, 'Behavioral Economics and Investor Protection: Reasonable Investors, Efficient Markets' (2013) 44 Loyola University Chicago Law Journal 1493

George J. Stigler, ‘Public Regulation of the Securities Markets’ (1964) 37 Journal of Business 117

  1. W. Verret, ‘Robinhood’s Threat to Sue the SEC Over Broker-Inducement Regulation Unlikely to Succeed’ (2021) George Mason Law & Economics Research Paper No. 21-38, <https://ssrn.com/abstract=3974960> accessed 1 January 2022

John C. Coffee, Jr, 'Market Failure and the Economic Case for a Mandatory Disclosure System' (1984) 70 Virginia Law Review 717

Jonathan R. Macey, ‘Securities Regulation and Class Warfare’ (2021) 2021 Columbia Business  Law Review 796

Kevin S. Haeberle, ‘Marginal Benefits of the Core Securities Laws’ (2021) 7 Journal of Financial Regulation 254

Luigi Zingales, ‘The Future of Securities Regulation’ (2009) 47 Journal of Accounting Research 391

Merritt B. Fox, Lawrence R. Glosten et al., 'Distributed Ledger Technology and the Securities Markets of the Future: A Stakeholder Survey' (2021) 2021 Columbia Business Law Review 651

Paul Davies, ‘Liability for Misstatements to the Market: Some Reflections’ (2009) 9 Journal of Corporate Law Studies 295

Rafael La Porta, Florencio Lopez-De-Silanes, Andrei Shleifer, ‘What Works in Securities Law?’ (2006) 61 Journal of Finance 1

Ronald J. Gibson and Reinier Kraakman, ‘The Mechanisms of Market Efficiency Twenty Years Later: The Hindsight Bias’ (2003) 28 The Journal of Corporate Law 715

Thomas M.J. Möllers, ‘Sources of Law in European Securities Regulation – Effective Regulation, Soft Law and Legal Taxonomy from Lamfalussy to de Larosière’ (2010) 11.3 European Business Organization Law Review 379

Zohar Goshen and Gideon Parchomosvky, ‘The Essential Role of Securities Regulation’ (2006) 55 Duke Law Journal 711

 

Lecture 6: Market Misconduct

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 12

Recommended readings:

FCA, Market Abuse, https://www.fca.org.uk/markets/market-abuse

FCA, Short Selling, https://www.fca.org.uk/markets/short-selling

Further readings:

Andrew Haynes, ‘Market abuse, Northern Rock and bank rescues’ (2009) 10 Journal of Banking Regulation 321

Emily Strauss, ‘Is Everything Securities Fraud?’ ((2020) UC Irvine Law Review (forthcoming), Duke Law School Public Law & Legal Theory Series No. 2021-04, <https://ssrn.com/abstract=3664132> accessed 1 January 2022

Jill E. Fisch and Jonah B. Gelbach, ‘Power and Statistical Significance in Securities Fraud Litigation’, (2021) 11 Harvard Business Law Review 55

Joshua Mitts, ‘Short and Distort’ (2020) 49 The Journal of Legal Studies

Peter O. Mülbert and Alexander Sajnovits, 'The Inside Information Regime of the MAR and the Rise  of the ESG Era' (2021) 18 European Company and Financial Law Review 256

Robert T. Miller, ‘Insider trading and the public enforcement of private prohibitions: some complications in enforcing simple rules for a complex world’ (2021) 52 European Journal of Law and Economics 307

Robert B. Thompson and Hillary A. Sale, ‘Securities Fraud as Corporate Governance: Reflections upon Federalism’ (2003) 56 Vanderblt Law Review 859

Stephen Mark Bainbridge, ‘The Law and Economics of Insider Trading: A Comprehensive Primer’ (2001) <https://ssrn.com/abstract=261277> accessed 1 January 2022

 

Seminar 3: Debt Regulation

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapter 13

Further readings:

Patrick Bolton and Howard Rosenthal, ‘Political Intervention in Debt Contracts’ (2002) 110 Journal of Political Economy 1103

Reinier H. Kraakman, ‘Gatekeepers: The Anatomy of a Third-Party Enforcement Strategy’ (1986) 2 Journal of Law, Economics, and Organization 53

John C. Coffee Jr., 'Gatekeeper Failure and Reform: The Challenge of Fashioning Relevant Reforms' (2004) 84 Boston University Law Review 301

Frank Partnoy, ‘How and Why Credit Rating Agencies Are Not Like Other Gatekeepers’ (2006) San Diego Legal Studies Paper N0. 07-46 <https://ssrn.com/abstract=900257> accessed 1 January 2022

Frank Partnoy, ‘Overdependence on Credit Ratings was the Primary Cause of the Crisis’ (2009) San Diego Legal Studies Paper No. 09-015 <https://ssrn.com/abstract=1430653> accessed 1 January 2022

John C. Coffee Jr, ‘Ratings Reform: The Good, the Bad, and the Ugly’ (2011) 1 Harvard Business Law Review 231

Lawrence J. White, 'The Credit Rating Agencies and Their Role in the Financial System' in Eric Brousseau, Jean-Michel Glachant, and Jérôme Sgard (eds), The Oxford Handbook of Institutions of International Economic Governance and Market Regulation (Oxford University Press 2019)  

 

Lecture 7: Takeovers

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapters 14

Recommended readings:

John Armour, Luca Enriques et al., The Anatomy of Corporate Law: A Comparative and Functional Approach (3rd edn., Oxford University Press 2017): Chapter 7

Further readings:

Anna L. Christie and J. S. Liptrap, ‘Goldilocks (Control) and the Three Bears: Panel on Takeovers and Mergers v. King’ (2020) 21 European Business Organization Law Review 591

Blanaid Clarke, ‘The Takeover Directive: is a little regulation better than no regulation?’ (2009) 15 European Law Journal 174

Carsten Gerner-Beuerle, David Kershaw, and Matteo Solinas, ‘Is the board neutrality rule trivial? Amnesia about corporate law in European takeover regulation’ (2011) 22 European Business Law Review 559

Edmund P. Schuster, ‘The Mandatory Bid Rule: Efficient, After All?’ (2013) 76 Modern Law Review 529

Henry G. Manne, ‘Mergers and the Market for Corporate Control’ (1965) 73 Journal of Political Economy 110

Luca Enriques, ‘European Takeover Law: The Case for a Neutral Approach’ (2011) 22 European Business Law Review 623

Luca Enriques, Ronald J. Gilson, and Alessio M. Pacces, ‘The Case for an Unbiased Takeover Law (with an Application to the European Union) (2014) 4 Harvard Business Law Review 85

Lucian A. Bebchuk, ‘A New Approach to Corporate Reorganizations’, (1988) 101 Harvard Law Review 775

Paul L. Davies, Edmund P. Schuster and Emilie van de Walle de Ghelcke, ‘The Takeover Directive as a Protectionist Tool?’ (2010) ECGI Working Paper 141/2010 <http://ssrn.com/abstract=1554616> accessed 1 January 2022

Sanford J. Grossmann and Oliver D. Hart, ‘Takeover Bids, the Free-Rider Problem, and the Theory of the Corporation’, (1980) 11 Bell Journal of Economics 42

Daniele D'Alvia, Paul Davies QC (hon), Ferdinand Mason, and Milos Vulanovic, ‘The UK SPAC Reform: Preliminary Remarks’, https://www.law.ox.ac.uk/business-law-blog/blog/2021/09/uk-spac-reform-preliminary-remarks

 

Seminar 4: Private Equity

Essential readings:

Louise Gullifer and Jennifer Payne, Corporate Finance Law: Principles and Policy (3rd edn, Hart, 2020): Chapters 16

Further readings:

Brian R. Cheffins, ‘Rumours of the Death of the American Public Company are Greatly Exaggerated’ (2019) ECGI Law Working Paper No 444/2019 <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3225889> accessed 1 January 2022

Bain & Co, ‘Global Private Equity Report 2021’, https://www.bain.com/globalassets/noindex/2021/bain_report_2021-global-private-equity-report.pdf

Steven N. Kaplan and Per Stromberg, ‘Leveraged Buyouts and Private Equity’ (2009) 23 Journal of Economic Perspectives 121

Jonathan Bevilacqua, ‘Convergence and Divergence: Blurring the Lines Between Hedge Funds and Private Equity Funds’ (2006) 54 Buffalo Law Review 251

Paul Gompers, Steven N. Kaplan and Vladimir Mukharlyamov, ‘What Do Private Equity Firms Say They Do?’ (2016) 121 Journal of Financial Economics 449

Florencio Lopez-de-Silanes, Ludovic Phalippou, and Oliver Gottschalg, ‘Giants at the Gate: Investment Returns and Diseconomies of Scale in Private Equity’ (2015) 50(3) Journal of Financial and Quantitative Analysis 377

Nicholas Bloom, Raffaella Sadun, and John Van Reenen, ‘Do Private Equity Owned Firms Have Better Management Practices?’ (2015) 105 American Economic Review 442

Viral V. Acharya, Oliver F. Gottschalg, Moritz Hahn and Conor Kehoe, ‘Corporate Governance and Value Creation: Evidence from Private Equity’ (2013) 26 Review of Financial Studies 368

William W. Bratton and Joseph A. McCahery, Institutional Investor Activism: Hedge Funds and Private Equity, Economics and Regulation (Oxford University Press, 2015)

 

Lecture 8: Digital Finance

Essential readings:

Chris Brummer, ‘Disruptive Technology and Securities Regulation’ (2015) 84 Fordham Law Review 977

Kirstene Baillie, ‘Regulation of Crowdfunding in the UK: Past, Present… and Future’ (2019) Business Law International 147

Recommended readings:

FCA, Cryptoassets, https://www.fca.org.uk/consumers/cryptoassets

FCA, Crowdfunding, https://www.fca.org.uk/consumers/crowdfunding

Jonathan Rohr and Aaron Wright, ‘Blockchain-Based Token Sales, Initial Coin Offerings, and the Democratization of Public Capital Markets’(2019) 70 Hastings Law Journal 463

Further readings:

Andrew Verstein, ‘Crypto Assets and Insider Trading Law’s Domain’ (2019) 105 Iowa Law Review 1

Brian D. Feinstein and Kevin Werbach, ‘The Impact of Cryptocurrency Regulation on Trading Markets’ (2021) 7 Journal of Financial Regulation 48

Carol R. Goforth, ‘Regulation of Crypto: Who Is the Securities and Exchange Commission Protecting?’ 58 American Business Law Journal 643

Dirk A. Zetzsche, Douglas W. Arner and Ross P. Buckley, ‘Decentralized Finance’ (2020) 6 Journal of Financial Regulation 172

Emilios Avgouleas and Aggelos Kiayias, ‘The Promise of Blockchain Technology for Global Securities and Derivative Markets: The New Financial Ecosystem and the “Holy Grail” of Systemic Risk Containment’ 20 European Business Organization Law Review 81

Eugenia Macchiavello, ‘The European Crowdfunding Service Providers Regulation: The Future of Marketplace Lending and Investing in Europe and the “Crowdfunding Nature” Dilemma’ (2021) 32 European Business Law Review 557

John Armour and Luca Enriques, ‘Promise and Perils of Crowdfunding: Between Corporate Finance and Consumer Contracts’ (2018) 81 Modern Law Review 51

Lars Hornuf and Armin Schwienbacher, (2017) ‘Should Securities Regulation Promote Equity Crowdfunding’ 49 Small Business Economics 579

Merritt B. Fox, Lawrence R. Glosten et al., ‘Distributed Ledger Technology and the Securities Markets of the Future’ (2021) 2021 Columbia Business Law Review 651

Philipp Hacker and Chris Thomale, ‘Crypto-Securities Regulation: ICOs, Token Sales and Cryptocurrencies under EU Financial Law’ (2018) 15 European Company and Financial Law Review 645

Shlomit Azgad-Tromer, ‘Crypto Securities: On The Risks of Investments in Blockchain-Based Assets and the Dilemmas of Securities Regulation’ 68 American University Law Review 69

Tobias Berg, Andreas Fuster, and Manju Puri, ‘FinTech Lending’ (2021) NBER Working Paper 29421 <https://www.nber.org/papers/w29421> accessed 1 January 2022

Yuliya Guseva, ‘When the Means Undermine the End: The Leviathan of Securities Law and Enforcement in Digital-Asset Markets’ (2022) 5 Stanford Journal of Blockchain Law & Policy 1

 

Seminar 5: Sustainable Finance

Essential readings:

John Amour, Luca Enriques, Thom Wetzer, ‘Mandatory Corporate Climate Disclosures: Now, but How?’ (2021) ECGI Law Working Paper 614 (Columbia Business Law Review, Forthcoming) <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3958819> accessed 1 January 2022

Recommended readings:

FCA, Climate change and sustainable finance, https://www.fca.org.uk/firms/climate-change-sustainable-finance

Alex Edmans, Is Sustainable Investing Really A Dangerous Placebo?, https://medium.com/@alex.edmans/is-sustainable-investing-really-a-dangerous-placebo-70d4767864db

John C. Coffee, Jr., 'The Future of Disclosure: ESG, Common Ownership, and Systemic Risk' (2021) 2021 Columbia Business Law Review 602

Tobias Tröger and Sebastian Steuer, ‘The Role of Disclosure in Green Finance’ (2021) ECGI  Law Working Paper 604/2021 <https://ssrn.com/abstract=3908617> accessed 1 January 2022

Further readings:

Douglas W. Arner, Ross P. Buckley et al., ‘Sustainability, FinTech and Financial Inclusion’ (2020) 21 European Business Organizational Law Review 7

Guido Ferrarini, ‘Corporate Purpose and Sustainability’ (2020) ECGI Law Working Paper 559/2020 <https://ssrn.com/abstract=3753594> accessed 1 January 2022

Johannes Stroebel and Jeffrey Wurgler, ‘What Do You Think About Climate Finance?’ (2021) NBER Working Paper 29136 <https://www.nber.org/papers/w29136> accessed 1 January 2022

John Armour, Luca Enriques, and Thom Wetzer, Corporate Carbon Reduction Pledges: Beyond Greenwashing, https://www.law.ox.ac.uk/business-law-blog/blog/2021/07/corporate-carbon-reduction-pledges-beyond-greenwashing

Paul G. Mahoney and Julia D. Mahoney, 'The New Separation of Ownership and Control' (2021) 2021 Columbia Business Law Review 840

Stefano Giglio, Bryan Kelly, and Johannes Stroebel, ‘Climate Finance’ (2021) 13 Annual Review of Financial Economics 15

This list was last updated on 23/01/2022